1.

1Executive summary

The growing use of Internet in India provides a developing prospect for online shopping.
If E -
marketers know the factors affecting online Indian behavior, and the r
e l a t i o n s h i p s between these factors and the type of online buyers, then they can further
develop
their m a r k e t i n g s t r a t e g i e s t o c o n v e r t p o t e n t i a l c u s t o m e r s i n t o a c t i v e o n
e s , w h i l e r e t a i n i n g existing online customers.This project is a part of study, and focuses
on factors which online Indian buyers keep inmind while shopping online. This research
found that information, perceived usefulness,ease of use; perceived enjoyment and
security/privacy are the five dominant factors whichinfluence consumer perceptions of
Online purchasing.Consumer behavior is said to be an applied discipline as some decisions
are significantlyaffected by their behavior or expected actions. The two perspectives that
seek applicationof its knowledge are micro and societal perspectives.The online purchasing
behavior of online shoppers and factor influencing online shoppingbehavior and its future
perspective. Internet is changing the way consumers shop and buygoods and services, and
has rapidly evolved into a global phenomenon. Many companieshave started using the
Internet with the aim of cutting marketing costs, thereby reducing theprice of their product
and service in order to stay ahead in highly competitive markets.Companies also use the
Internet to convey, communicate and disseminate informationto sell the product, to take
feedback and also to conduct satisfaction surveys withc u s t o m e r s . C u s t o m e r s u s e
t h e I n t e r n e t n o t o n l y t o b u y t h e p r o d u c t o n l i n e , b u t a l s o t o compare
prices, product features and after sale service facilities they will receive if
thep u r c h a s e t h e p r o d u c t
f r o m a p a r t i c u l a r s t o r e . M a n y e x p e r t s a r e o p t i m i s t i c a b o u t t h e prospect of
online business.

In addition to the tremendous potential of the E-commerce market, theInternet

provides a unique opportunity for companies to more efficiently reachexisting and

potential customer. Although most of the revenue of online transactionscomes from B2B
commerce, the practitioners of B2C
commerce should not
losec o n f i d e n c e . I t h a s b e e n m o r e t h a n a d e c a d e s i n c e b u s i n e s s - t o -
c o n s u m e r E - commerce first evolved. Scholars and practitioners of electronic
commerceconstantly strive to gain an improved insight into consumer behavior in
cyberspace.A l o n g w i t h t h e d e v e l o p m e n t o f E -
retailing, researchers continue to explain E-
consumers behavior from different perspectives. Many of their studies
havefactors or
assumptions which are based on the traditional models of consumer behavior, and
then examine their validity in the Internet context
1.2 Introduction
Internet is changing the way consumers shop and buy goods and services, and has
rapidlyevolved into a global phenomenon. Many companies have started using the
Internet withthe aim of cutting marketing costs, thereby reducing the price of their products
and servicesin order to stay ahead in highly competitive markets. Companies also
use the Internet toconvey communicates and disseminate information, to sell the
product, to take feedback and also to conduct satisfaction surveys with
customers. Customers use the Internet notonly to buy the product online, but also
to compare prices, product features and after saleservice facilities the will receive if
they purchase the product from a particular store. Manyexperts are optimistic about the
prospect of online business.In addition to the tremendous potential of the E-commerce
market, the Internet provides aunique opportunity for companies to more efficiently reach
existing and potentialcustomers. Although most of the revenue of online
transactions comes from business-to-business commerce, the practitioners of
business-to-consumer commerce should not loseconfidence .It has been more than a
decade since business-to-consumer E-commerce firstevolved. Scholars and practitioners
of electronic commerce constantly strive to gain animproved insight into consumer
behavior in cyberspace. Along with the development of E-retailing, researchers continue to
explain E-consumers behavior from differentperspectives. Many of their studies have
posited new emergent factors or assumptionswhich are based on the traditional
models of consumer behavior, and then examine their validity in the Internet context

ABSTRACT This study attempts to analyze the characteristics of buying behaviour of online shoppers.
Consumer buying behaviour in respect of online shopping was studied using different socio-
economic variables. It also provides a support that helps researchers understand the drivers of
consumers’ attitude and goal to shop on the Internet, and consumers’ perceptions regarding ease of
use and usefulness. Conclusions derived from the analysis can be used as useful guide for market
orientation. The outcomes of the study suggest that assessment of consumer buying behaviour can
contribute to a better understanding of consumer buying behaviour in respect of online shopping.
Keywords Consumer Buying Behaviour, Nicosia, etc Introduction Consumer Behaviour is the study of
individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of
products, services, experiences, or ideas to satisfy needs and the impacts that these processes have
on the consumer and society. It blends elements from psychology, sociology, social anthropology,
marketing and economics. It attempts to understand the decision-making processes of buyers, both
individually and in groups such as how emotions affect buying behavior. It studies characteristics of
individual consumers such as demographics and behavioral variables in an attempt to understand
people’s wants. It also tries to assess influences on the consumer from groups such as family,
friends, sports, reference groups, and society in general. (Source : Engel, J.F., Blackwell, R.D. and
Kollat, D.T. (1973), Consumer Behavior ) Review of Literature A literature review is a text of a
scholarly paper, which includes the current knowledge including substantive findings, as well as
theoretical and methodological contributions to a particular topic. It is not a chronological catalog of
all of the sources, but an evaluation, integrating the previous research together, and also explaining
how it integrates into the proposed research program. All sides of an argument must be clearly
explained, to avoid bias, and areas of agreement and disagreement should be highlighted. It is not a
collection of quotes and paraphrasing from other sources. A good literature review should also have
some evaluation of the quality and findings of the research. Ajzen (1994) in his study on perceptions
towards online shopping reveals that perceptions toward online shopping and intention to shop
online are not only affected by ease of use, usefulness, and enjoyment, but also by exogenous
factors like consumer traits, situational factors, product characteristics, previous online shopping
experiences, and trust in online shopping. Garcia (1998) shows that the number of online shoppers
in six key European markets has risen to 31.4 percent from 27.7 percent last year. This means that
59 million Europeans use the Internet regularly for shopping purposes. However, not only does the
number of online shoppers grow, the volume of their purchases also increases over-proportionally.
Murray, (2001) In the US, says that online sales are forecasted to exceed $36 billion in 2002, and
grow annually by 20.9 percent to reach $81 billion in 2006. Europeans are spending more money
online as well. Whereas combined revenues for Amazon.com’s European operations grew at more
than 70 percent annually in each of the past three quarters, topping $218 million. While these
figures show that a large number of consumers in the US and Europe frequently use the Internet for
shopping purposes, it is not clear what drives them to shop online and whether these numbers could
be even. Davis, (2002). Their study reveals that if more attractive online stores were developed. This
raises the issue of examining what factors affect consumers to shop online. Therefore, a framework
is needed to structure the complex system of effects of these different factors, and develop an in-
depth understanding of consumers’ perceptions toward Internet shopping and their intentions to
shop online. This study reveals that we build up such a framework based on previous research on
consumer adoption of new selfservice technologies and Internet shopping systems. The research
suggests that consumers’ perception toward Internet shopping first depends on the direct effects of
relevant online shopping features. Rogers (2003) concluded that Online shopping features can be
either consumers’ perceptions of functional and utilitarian dimensions, like “ease of use” and
“usefulness”, INDIAN JOURNAL OF APPLIED RESEARCH X 855 Research Paper Volume : 5 | Issue : 4 |
April 2015 | ISSN - 2249-555X or their perceptions of emotional and hedonic dimensions like
“enjoyment by including both utilitarian and hedonic dimensions, aspects from the information
systems or technology literature, as well as the consumer behavior literature are integrated in our
framework. Limayen (2004) In addition to these relevant online shopping features, also exogenous
factors are considered that moderate the relationships between the core constructs of the
framework. Benbaset (2006); Relevant exogenous factors in this context are “consumer traits”
“situational factors” “product characteristics” “previous online shopping experiences” and “trust in
online shopping” By incorporating these exogenous factors next to the basic determinants of
consumers’ perception and intention to use a technology, the framework is applicable in the online
shopping context. Together, these effects and influences on consumers’ perception toward online
shopping provide a framework for understanding consumers’ intentions to shop on the Internet.
Sycara (2005) online shopping “Computer playfulness” is the degree of cognitive spontaneity in
computer interactions. Playful individuals may tend to underestimate the difficulty of the means or
process of online shopping, because they quite simply enjoy the process and do not perceive it as
being effortful compared to those who are less playful “Computer anxiety” is defined as an
individual’s apprehension or even fear when she/he is faced with the possibility of using computers.
This influences consumers’ perceptions regarding the “ease of use” of the Internet as a shopping
medium in a negative way, since using a computer is one of the necessary requirements for online
shopping. Zhang (2009). Intrinsic motivation for Internet shopping is captured by the “enjoyment”
construct in our framework. Intrinsic value or “enjoyment” derives from the appreciation of an
experience for its own sake, apart from any other consequence that may result. Karayanni (2008)
concluded that “enjoyment” results from the fun and playfulness of the online shopping experience,
rather than from shopping task completion. The purchase of goods may be incidental to the
experience of online shopping. Thus, “enjoyment” reflects consumers’ perceptions regarding the
potential entertainment of Internet shopping found “enjoyment” to be a consistent and strong
predictor of attitude toward online shopping. Menon (2010). Says that If consumers enjoy their
online shopping experience, they have a more positive attitude toward online shopping, and are
more likely to adopt the Internet as a shopping medium. In our framework, we identify three latent
dimensions of “enjoyment” construct, including “escapism”, “pleasure”, and “arousal” “Escapism” is
reflected in the enjoyment that comes from engaging in activities that are absorbing, to the point of
offering an escape from the demands of the day-to-day world. “Pleasure” is the degree to which a
person feels good, joyful, happy, or satisfied in online shopping. Morrison (2011). Whereas “arousal”
is the degree to which a person feels stimulated, active or alert during the online shopping
experience. A pleasant or arousing experience will have carry-over effects on the next experience
encountered If consumers are exposed initially to pleasing and arousing stimuli during their Internet
shopping experience, they are then more likely to engage in subsequent shopping behavior: they will
browse more, engage in more unplanned purchasing, and seek out more stimulating products and
categories. Geissler, (2012) The shopping motivation literature is abound with various measures of
individual characteristics (e.g., innovative, venturesome, cosmopolitan, variety seeking), therefore,
innovativeness and risk aversion were included in this study to capture several of these traits.
Measures by Donthu and Gilliland were used to measure innovativeness and risk aversion. Ying
(2006) in his study “Essay on modeling consumer behavior in online shopping environments”
examined online purchase behavior across multiple shopping sessions. Shopping cart abandonment
is the bane of many e-commerce websites. He investigated abandoned shopping carts in an online
grocery shopping setting. Specifically, he developed a joint model for the cart, order, and purchase
quantity decisions. The interdependence between the three decisions is captured by the correlations
between the error terms. Empirical analysis shows that not all abandoned shopping carts result in
lost sales. Customers routinely pick up abandoned carts and complete the final orders. Among the
factors that propel customers to continue with aborted shopping are the time of shopping, time
elapsed since the previous visit, the number of items left in the abandoned cart, and promotion
intensity. The study offers marketers important managerial implications on how to mitigate the
shopping cart abandonment problem. Khalifa and Limayem (2003) in a research entitled “Drivers of
internet shopping” applied well-established behavioral theories to explain Internet consumer
behavior. Then, they conducted a longitudinal survey study to identify key factors influencing
purchasing on the Web and to examine their relative importance. The results indicate that the
intentions of Internet consumers are significantly affected by the perceived consequences of online
shopping, the consumers’ attitudes towards it, and social influence. Kim and Park (2003) in a study
“Identifying key factors affecting consumer purchase behavior in an online shopping context”
investigated the relationship between various characteristics of online shopping and consumer
purchase behavior. Result of the online survey with 602 Korean customers of online bookstores
indicate that information quality, user interface quality and security perceptions affect information
satisfaction and relational benefit that in turn, are significant related to each consumers’ site
commitment and actual purchase behavior. Herna´ndez et al. (2011) in a study “Age, gender and
income: do they really moderate online shopping behavior?” Analyzed whether individuals’
socioeconomic characteristics – age, gender and income – influence their online shopping behavior.
The individuals analyzed are experienced e-shoppers i.e. individuals who often make purchases on
the internet. The results of their research show that socioeconomic variables moderate neither the
influence of previous use of the internet nor the perceptions of e- commerce; in short, they do not
condition the behavior of the experienced e-shopper. 856 X INDIAN JOURNAL OF APPLIED RESEARCH
Research Paper Volume : 5 | Issue : 4 | April 2015 | ISSN - 2249-555X Avadhani V.A. (1 999),
Marketing of financial services and markets, Himalaya Publishing House, Delhi. | Cooper, D.R. and
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(1990), Research Methodology, Second revised – edition, New Age international (P) Limited,
Publishers, New Delhi. | Kotler, p. (2001), Marketing Management, Prentice-Hall, India. | Elhance,
D.N. (1984), Fundamentals of Statistics, Kitab Mahal, New Delhi. | REFERENCE Chen (2009) in his
dissertation entitled “Online consumer behavior: an empirical study based on theory of planned
behavior “ extends theory of planned behavior (TPB) by including ten important antecedents as
external beliefs to online consumer behavior. The results of data analysis confirm perceived ease of
use (PEOU) and trust are essential antecedents in determining online consumer behavior through
behavioral attitude and perceived behavioral control. The findings also indicate that cost reduction
helps the consumer create positive attitude toward purchase. Further, the findings show the effects
of two constructs of flow –concentration and telepresence, on consumers’ attitude. Concentration is
positively related to attitude toward purchase, but telepresence likely decreases attitude due to the
consumers’ possible nervousness or concern about uncertainty in the online environment.
Conclusion This study shows that online shopping is having very bright future in India. Perception
towards online shopping is getting better in India. With the use of internet, consumers can shop
anywhere, anything and anytime with easy and safe payment options. There are two factors mainly
influencing the consumers for decision making: Risk aversion and innovativeness. Risk aversion is a
measure of how much consumers need to be certain and sure of what they are purchasing. Highly
risk adverse consumers need to be very certain about what they are buying. Whereas less risk
adverse consumers can tolerate some risk and uncertainty in their purchases. The second variable,
innovativeness, is a global measure which captures the degree to which consumers are willing to
take chances and experiment with new ways of doing things.